Education vital to fiscal health

By William A. Sederburg
Published: Wednesday, Jan. 25, 2006 9:55 a.m. MST
E-MAIL | PRINT | FONT + - 
The Legislature has started working on the Fiscal Year 2007 budget. Gov. Jon Huntsman Jr., to his credit, has made economic development his top priority. He is aware that without economic growth, public needs in Utah such as transportation and education cannot be financed.

A great deal of the discussion about economic development has been focused on high technology. Many (including myself) support the $60 million initiative providing research funds (Utah Science Technology and Research) for targeted technology areas. The budget also provides for tax cuts and tourism initiatives. While all are worthwhile, in my opinion, our leaders are missing the major issue facing Utah: the weakening connection between education and economic growth.

The key to personal growth and well-being is adequate education and training. The data are impressive. In 2002, the median per-capita income in the United States for citizens with a four-year degree was $49,000 and only $30,000 for those with a high school diploma. Over a life time, the difference in earning power is immense.

There are well-known exceptions to the rule; however, there is little dispute that the single most powerful thing a person can do to increase his earning capacity is to become educated. As an educator, I would add that education also improves one's understanding of the world and enriches one's life in many ways.

Story continues below
The same principle applies to states. The single most powerful strategy a state can use to improve income is to increase the number of college graduates. This is now the basis of economic growth strategies in some states like Colorado, New Jersey and Minnesota. The principle is simple: In a diversified economy, the state should empower as many people as possible with the tools needed to succeed in the new economy. There is a very strong correlation between states with "bachelor's degrees awarded" and "per capita personal income." In 2004, of the 10 states with highest per capita income, all 10 were in the top 10 in the percentage of the population (ages 24 to 35) with a four-year degree.

Utah is presently headed in the wrong direction. The percentage of young people attending college has declined. In 1994, 41 percent of the state's 18 to 24 year-olds enrolled in post secondary education. By 2004, this number had decreased to 35 percent. Utah has a reputation as an education-oriented state; however, the data from 2004 places Utah in the bottom third of all states.

Some might argue that Utahns tend to defer their education. However, the data aren't positive on this score, either. In 1994, 3.9 percent of the 25 to 49 year-olds were attending some form of school. In 2004, the percentage was 3.7 percent. Again, Utah is in the bottom third of all states and trending in the wrong direction.

Comments

You can be the first to comment on this story.